Brokers are constantly devising new ways to recruit new traders into the forex system. Often, they assimilate newbies into the system through promotional campaigns and persuasive advertising. One of such promotional strategy is the granting of bonuses without deposit to increase the number of traders that would sign up with them.
Brokerage companies have realized that the average individual is scared of conducting forex transactions online. This can be attributed to the numerous cases of online scams- crafty brokers who would promise you heaven and earth but give you hell.
To regain the trading public’s trust in the forex market, brokerage platforms have invented this recent bonus structure. This bonus structure is termed the forex no deposit bonus.
According to a survey conducted by Finance Magnates, Malaysian traders invest over 76 million USD per month in forex. Flowing from this survey, it is safe to say that Malaysia is one of the most promising countries for forex market development.
By the end of this article, you would know the fundamentals of this bonus structure and the trading companies you should look out for.
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What is a no-deposit bonus?
From its name, you can easily guess its meaning and the conditions for getting it. Simply put, a no deposit bonus is a bonus granted by a brokerage company to its first-time customers without them depositing money. This bonus is complimentary.
The major advantage of this offer is that it allows you to test-run the forex market without subjecting your funds to market uncertainties. It serves as a life demo session and training ground for prospective traders. However, you may be required to open a live premium account to be eligible to receive the bonus.
You should know that there are a lot of brokerage companies offering this bonus. Hence, you have to conduct a great deal of research to determine if the platform is legitimate or not. You should also read a bunch of reviews about the different brokerage companies you are considering. Do not leave anything to chance, every word matters. Be wary of overly positive reviews. A good number of them are baits waiting for their next hapless victims.
In addition, do not be carried away by the offer that you forget to verify the source of the offer. There are good gifts from bad brokers.
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Top 3 platforms offering this type of bonus
Before we proceed, you should note that the European market regulator, (ESMA) has prohibited the granting of certain kinds of registration bonuses, in European Union jurisdictions. Hence, if you fall under such jurisdictions, you would not be an eligible recipient of this bonus.
The same also applies in the United Kingdom and Australia. They are legislated against by these two independent bodies namely; FCA and ASIC respectively. The FCA stands for the financial conduct authority while ASIC stands for Australian Securities and Investment Commission.
Here are the top 3 platforms offering no deposit bonuses in 2022:
1. MTrading
This Company occupies the first spot on the list because of its superior onboarding features. If you are considering trading with them, you should know the following things.
MTrading grants their first-time customers a no deposit bonus of $30 when they open an account with them. First-time customers must open a live premium account with them to be verified. Any customer who is not verified cannot take part in their promotion.
This company also requires their customers to provide correct personal details like their name, phone number, and country of residence. Customers are advised to cross-check if their country is allowed to participate in their first-timer’s bonus offering.
This is because their company’s policy only allows certain residents to enjoy this offer. Residents of China, Malaysia, Vietnam, Sri Lanka, India, and Malaysia are free to enjoy their welcome no-deposit bonus by shooting them a mail.
Non- restricted customers can receive this company’s bonus only once. Customers have a time limit of 40 days to make use of this bonus.
After 40 days, if the customer doesn’t make use of his bonus, company’s policy allows this platform to deduct the bonus as well as unclaimed profits from the client’s account.
Traders seeking to carry out forex using this platform should note that the welcome bonus can only be traded with. Customers cannot withdraw their welcome bonus or transfer them to any internal account they hold with the company.
Clients of this company can only withdraw the profits which they have made by trading with the bonus given to them. The maximum profit available for withdrawal is 200$. For traders to be able to withdraw their profits, they must satisfy the company’s minimum required lot size.
MTrading’s minimum required lot size is 5 lots. On this platform, any trade that is open for lower than 3 minutes and 00 seconds is deemed ineligible.
Once their customer successfully makes his first withdrawal, 30$ would be deducted from the customer’s account.
They also offer their customers leverage of 1:1000 to enable their clients to secure more positions. Customers that have any familial affiliation to any of their staff would be barred from being a recipient of this bonus.
2. XM
This platform is also one of the greats when it comes to the granting of newbie bonuses. Apart from it being legally recognized since it’s registered with the Cyprus securities exchange commission. It is suitable for acclimatizing people to real-life trade situations through the 30$ no deposit bonus. Customers can use this money to trade and obtain take profit when a deal is successful.
XM offers their customers negative balance protection with leverage of 30:1.
This brokerage company is MT4, MT5, and Webtrader compatible. This means that their customers can carry on exchange transactions on the aforementioned platforms.
However, like other brokerage companies, they have a time limit on their bonus usage. XM reclaims the bonus if the customer doesn’t make use of it within this time frame.
Persons that are regarded as minors cannot take part in the No deposit bonus scheme of this company.
This is because prospective customers that fall into this category cannot form legally binding contracts. Also, they do not allow customers that have familial relations with any of their staff to take part in their promotional campaign.
3. Insta forex
This platform is also a worthy addition to this list because they give the largest bonus out of the other two mentioned. InstaForex gives their customers a whopping bonus of $1000 without any deposit on the customer’s part.
Their customers do not have to completely verify their registration before they are awarded this bonus. Once they sign up, their account is automatically credited. However, with this giveaway price comes the burden of limited time.
InstaForex gives their potential customers ONLY 7 days to deposit real funds. If they fail to do so, the money turns into a virtual one. Their customers are permitted to withdraw the profits they obtain from trading with the bonus. Although, this only applies when they have deposited a commensurate amount of real funds.
Conclusion
If you are considering forex trading, you should make necessary inquiries about your brokerage options before settling on a brokerage partner. This is because platforms’ conditions are different across the industry. Also, as an added tip, you should check if promotional bonuses are supported in your country. Doing this would prevent you from being on the wrong side of things.
